Editorial: We need to stop treating China as boogeyman

Election-year arguments more often inflame than enlighten. This heated political season is no exception to that rule, especially when it comes to China.

China has been demonized in political ads across the country, including Michigan’s races for Congress and governor. The last is an echo of themes played out in the 2006 gubernatorial contest between Gov. Jennifer Granholm and businessman Dick DeVos.

Whatever the outcome of Tuesday’s election, the state and country should rethink assumptions about China. With 1.3 billion people and the world’s fastest expanding consumer market, China is rife with possibility. The rampant condemnation of China — including xenophobic undertones — damages West Michigan companies that are smartly looking to capitalize on that rich sales territory.

How rich? China is now the third-largest export market for the United States, behind Canada and Mexico. In the last decade U.S. exports to China jumped by 330 percent, far outpacing the growth of exports to other parts of the world. By 2030, China will surpass the United States as the world’s biggest economy, some analysts believe. China is already the world’s largest car market, a wake-up call to domestic automakers hungry for fresh customers.

In the 3rd Congressional District, centered in Grand Rapids, Democrat Pat Miles has taken on his Republican opponent, Justin Amash, for investments his family company made in a Chinese firm. Mr. Miles claims Mr. Amash is the “creator of jobs in China.”

Mr. Amash countered with evidence that Mr. Miles owned a mutual fund invested in the Bank of China. Mr. Miles subsequently sold the fund and urged Mr. Amash to similarly divest.

Lansing Mayor Virg Bernero, the Democratic candidate for governor, has savaged his GOP opponent, Rick Snyder, for being part of companies that have made investments in China.

The same wrong-headed attacks were launched against Mr. DeVos and Amway Corp. in the 2006 election. The question for critics of investment in China is whether they would have Michigan companies simply write off the most promising market in the world.

The false equation in these advertisements and debates is that more jobs in China equals fewer jobs in the United States. Expanding market reach in China will lead to stronger domestic companies. Refusing to engage there in a global market could mean death. That’s why businesses such as Amway, Herman Miller, Haworth, Steelcase, Autocam all have a presence in China.

The fervid accusations and counter accusations are reminiscent of days when people wasted energy smashing Japanese cars with sledgehammers instead of creating American cars that would surpass competitors in quality and sales.

Legitimate debate should be had about intellectual property rights, currency manipulation and market access — all real concerns as the U.S. considers its trade imbalance with China. However, the China bashing in this year’s election is an anti-business message that will take Michigan in the wrong direction.

Michigan businesses are smartly looking forward, seeking to make money in China. Michigan’s politicians should aid in that mission, not condemn business leaders for seeking to compete in a world economy.

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